When I upgraded Parallels and P Tools, I get the following error while booting... "Problem with network adapter is detected. Please check if network cable is connected to the physical network adapter attached to the virtual machine." I have tried reinstalling Parallels Tools but it's making no difference. Any ideas? The adapter looks fine in the Device Manager - aka no yellow "!". Please help.
I ran into this problem with RC2. The issue is with OSX itself. I physically removed the Paralells network adapters from OS X, reinstalled parallels and all was well for me.